$WWR Too many investors think a secondary stock offering from a growth stock is a bad thing. In some cases, they are. There are far too many examples of companies that issue shares of stock just to keep the lights on and to meet payroll. These stocks, which are usually bad investments, usually trend down (or at best sideways) before, and after, the offering because management is destroying value. But don’t assume all secondary offerings are bad just because some are. There are also many examples of small-cap stocks and early-stage growth stocks that complete secondary stock offerings because it is the most efficient way to raise growth-fueling capital.
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